An appraisal is an educated look at something’s potential value, based on current market conditions and the skill of the appraiser. An appraisal works by tallying up information about the asset to make an estimate. Though the end result is simply a number – the expected value of the asset in question – an appraisal is no easy feat.
What’s In An Asset
When appraising an asset, one important question to ask is: what are similar assets selling for in the expected market? While by no means an all-in-one value, it can be helpful to consider. Just don’t read into it too much; always consider multiple sources when appraising an asset. Two given machines of the exact same type, model, year, and make might sell for vastly different prices, and there are plenty of factors to think about as to why. In the face of this overwhelming disparity, one strategy is patterns. It’s well known that human brains are good at pattern recognition; time to put that tendency to use! If you can find a pattern, it may help to value your equipment.